November 23, 2010
Frequently in federal district courts two parties will file identical lawsuits, each a mirror-image of the other, in different federal districts. In Research Automation, Inc. v. Schrader-Bridgeport Intern’l, Inc., 626 F.3d 973 (7th Cir. 2010), Case No. 09-2232, the 7th Circuit held that there is no presumption in favor of the court in which the first case was filed when a court is deciding whether to transfer a case.
In this case, the parties filed mirror-image lawsuits in Illinois and Virginia. Each case was removed to federal court and each defendant moved to transfer the competing lawsuit to its preferred venue. Research Automation sought for the action to be transferred to Illinois, because that case was filed first. The trial court denied that request and transferred the case to Virginia. Research Automation appealed.
On appeal, the Court addressed Research Automation’s argument that there was a presumption in favor of the forum where the first action was filed. The Court disagreed, finding that a trial court should use the analysis applicable to other transfers in this situation.
The lesson from this case? What forum a federal lawsuit is first filed in will have little effect on where it is ultimately litigated, in cases involving mirror-image lawsuits in different jurisdictions.
Lessons:
- In situations involving mirror-image lawsuits in federal court, there is no presumption in favor of the jurisdiction in which the first case was filed.
Price Waicukauski & Riley, LLC
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